Salve a tutti,
by now you already probably got an email from your broker warning you about the high volatility expected at the next market opening on Sunday.
For those who didn’t get this sort of notice, we decided to write this post in order to advise you and also to explain how to set ReticoloFX to minimize the possible impact on open trades.
This coming Sunday, 17th of June 2012, will be the Greek legislative elections. This is important regarding the future of Greece as part of the Eurozone. We believe these elections may result in periods of extreme volatility. That can be a good news after a ranging week but it won’t in case there is too much volatility.
In case you’re running ReticoloFX, be aware that the latest version 1.4 – which was released yesterday – has two options that are made specifically for these situations.
The first is “on_hold”. By default it is set to false but you should set it to TRUE. What it does is avoiding the EA from opening additional orders but at the same time the EA will be able to manage the existing ones and if they go in profit, close them as usual.
The second is “stop_after_close”. By default it is set to false. What it does is have the EA stop trading after the open orders reach the target profit. If you want the EA to wait a few hours or days before restarting to trade this is the option you should set to TRUE.
I know that we wrote that ReticoloFX loves volatility. And that is true. But too much (especially huge weekend gaps) can be dangerous for everyone/everything. We don’t know how much the results of the Greek elections will impact every single currency. And we sincerely don’t know what to expect. But we know that we don’t want anyone to loose money. If you’re using a safe lot size ratio (leverage) you should have no problems. If not, or if you want to be even safer you should think about adding funds to your account and/or closing all the unnecessary trades open. Putting stops may not be much useful as in those sistuations they may not be respected.
Monday we’ll see what’s been the impact on the Forex market of Greeks decision.
I wish you a good weekend,